USDTRY brakes above the 7,00 mark, a level that was a strong resistance the last ten trading sessions. The Risk Aversion turns investors attention to safe-haven assets such as USD and gold, while the emerging markets currencies are under selling pressure today.
Turkey Consumer Price Index for April came in at 0.85% above the expectations of 0.6%, while the yearly CPI reading came in at 10.94%, also above the expectations of 10.88%. The Turkey Producer Price Index rose from 0.87% in March to 1.28% in April; the yearly PPI came in at 6.71% the March reading was at 8.5%.
From the USA, the Factory Orders which released earlier came in at -10.3%, below the forecasts of -9.7% in March. The ISM-NY Business Conditions Index came down to 4.3 in April well below the March reading of 12.9.
Turkey’s attempts to support the Turkish lira has become extremely tough amid the coronavirus outbreak as the number confirmed cases continue to rise and central bank burns the fx currency reserves.
USDTRY is 0.85% higher at 7.0491, as the pair manages to break above the psychological 7.00 mark making also the highest level since the 2018 Turkish currency crisis. Bulls are in full control of the pair, and higher levels might be on the cards. The technical picture is clearly bullish for USDTRY as the pair hovers in unchartered territory.
On the upside, the initial resistance for USDTRY pair stands at 7.0502 the daily high. The next resistance will be met at 7.10 psychological mark.
On the other side, immediate support for USDTRY pair stands at 7.0023 the daily low. If the pair breaks below, the next critical support level stands at 6.9708 the low from April 30 trading session. If the correction continues below 6.9708, then the next target stands at 6.8763 the low from April 20.